Labour (Retrenchment) Regulations, 2024
New retrenchment rules confirm a minimum package of one month's pay for every year of service, set up a Retrenchment Board with new notice forms LRR1 to LRR4, and repeal the 2003 retrenchment regulations.
The Minister of Public Service, Labour and Social Welfare has made fresh retrenchment regulations, repealing the Labour Relations (Retrenchment) Regulations, 2003 (S.I. 186 of 2003).
The headline figure for employees: unless better terms are negotiated and agreed with the employer, the minimum retrenchment package is one month's salary or wages for every year of service, with a proportionate lesser amount for a part year. It is a floor, not a ceiling — the parties can agree more.
The regulations re-establish the Retrenchment Board. It has eleven members appointed by the Minister: three from the labour Ministry (one of whom chairs it), one nominated by the Finance Minister, one by the Industry and Commerce Minister, two drawn from employer organisations' nominations and two from trade union nominations. Members serve up to four years, renewable once. Five members form a quorum, decisions are by simple majority, and the chair has a casting vote. The Board's job is to resolve retrenchment matters referred under sections 12C, 12CC and 12D of the Labour Act and to recommend retrenchment policy.
Procedurally, an employer intending to retrench must serve notice on form LRR1. Within fourteen days of a retrenchment the Board issues the employer a certificate of retrenchment on form LRR2. Where non-payment is alleged, the Board may issue a certificate of non-compliance on form LRR3. Form LRR4 is a prosecution request the Board sends to the Zimbabwe Republic Police, referring an employer who retrenched without giving the Board notice for prosecution under the Labour Act.
That prosecution form is the sharpest practical change for employers: failing to notify the Board is treated as a criminal matter to be referred to the police, and the form records whether the employer is a first or repeat offender. The regulations do not themselves set a fine or prison term — the penalty sits in section 12C of the Labour Act.
No commencement date is stated in the text; the instrument was gazetted on 6 December 2024. Note one internal inconsistency: the notice provision cross-refers to section 12C(3)(a)(ii) while the prosecution form refers to failure to notify under section 12C(5), so the exact notification provision should be checked against the Act.
What changed
- Minimum retrenchment package fixed at one month's salary or wages per year of service, unless better terms are agreed
- The Labour Relations (Retrenchment) Regulations, 2003 (S.I. 186 of 2003) are repealed
- A Retrenchment Board of eleven ministerial appointees is established, with a quorum of five and a casting vote for the chair
- Employers must give notice of intention to retrench on new form LRR1
- The Board must issue a certificate of retrenchment on form LRR2 within fourteen days of a retrenchment
- New form LRR3 certifies non-compliance and form LRR4 refers an employer to the police for prosecution
Who this affects
- employers planning retrenchments
- employees facing retrenchment
- human resources practitioners and labour consultants
- trade unions and works councils
- employment councils handling retrenchment referrals
Plain-language summary — not legal advice. Always read the full instrument.